Gift tax

gift tax, a levy imposed on gratuitous transfers of property—i.e., those made without compensation. Provisions for such taxes are common in national tax systems.

In the tax systems of many nations, gift taxes are integrated to some degree with an estate (inheritance) tax. The relationship stems not only from the fact that gifts and bequests share the quality of gratuity but also from the practical consideration that gifts are often resorted to as a means of avoiding estate taxes. Where the two are more or less integrated, they may be thought of as constituting an accessions tax.